Govt orders shuttering of 1.75 lakh shell companies found to be funneling black money: Modi

The government has deregistered and shuttered more than 1.75 lakh 'shell' or paper companies with doctored accounts based on data mined from demonetisation, Prime Minister Narendra Modi said on Tuesday, signalling the government’s intent to go after tax dodgers.

“The drive against black money has led to the discovery of many shell companies. Following demonetisation, over three lakh companies have been found, which are nothing but shell companies,” Modi said in his Independence Day speech from the ramparts of Red Fort.

“Of these, the registrations of 175,000 companies have been cancelled,” he said. These companies were used to funnel black money by obscuring the source of slush funds. As many as 400 bogus firms were found to be operating from a single address.

Modi also said that an additional individual income tax assessees have more than doubled to 56 lakh this year, from 22 lakh last year. More than 18 lakh people have so far been found whose income disclosed in tax returns are lower than their actual earnings. About 1 lakh people, who had never filed returns, have filed their tax returns for the first time this year. Benami properties worth Rs 800 crore have been identified so far, he said.